TikTok Facing Potential Ban in US; Target to Launch Paid Membership to Rival Amazon Prime & Walmart+; Amazon Loses Appeal Over Targeting UK Consumers

On today’s ExchangeWire digest: TikTok Facing Potential Ban in US; Target to Launch Paid Membership to Rival Amazon Prime & Walmart+; Amazon Loses Appeal Over Targeting UK Consumers 

National security concerns in the US have led to the introduction of a new bill which would – if passed – ban app stores in the country from distributing Chinese owned apps. This ban would include TikTok, unless the video platform severs ties with its Chinese parent company, ByteDance. The bill would impose a civil penalty on app stores and web hosting services which violated the legislation. Lawmakers have given ByteDance 165 days to divest TikTok to avoid the app from being banned. The video giant has called the bill out as trampling the first amendment rights of Americans, and depriving small businesses of a platform relied on to grow and create jobs. 

In other US focused news, Target has plans to launch a paid membership program to rival other major retail giants such as Amazon and Walmart. On 7th April, the retailer will debut Target Circle 360, a membership which will build on its Target Circle loyalty program. It will offer subscribers unlimited free same-day delivery for orders USD$35 (£27.50) and over, along with free two-day shipping, with the aim of competing against Amazon Prime and Walmart+. For Target cardholders, the membership will be priced at USD$49 (£38.50). The membership will be available at the same cost to non-cardholders only for the first few weeks following the launch; from mid-May, the price for non-cardholders will rise to USD$99 (£77.80). 

Staying in the retail sector, Amazon has lost an appeal against a ruling which claimed it had infringed UK trademarks by targeting British consumers on its US website. The tech titan was found to have infringed the trademarks by London’s Court of Appeal in 2022, and appealed to the UK Supreme Court in 2023 where it was ruled that the US website was targeting UK consumers. Intellectual property lawmakers have said the ruling could affect all online retailers, as they would need to ensure their platforms were not automatically targeting UK consumers. 

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